The most notable thing about the January 2011 incoming cabinet is its
continuity - at least half a dozen of President Lula da Silva's most trusted
ministers are gearing up to remain in office. Lula's protégé and
successor, President-elect Dilma Rousseff, aided by her new chief of staff,
Antônio Palocci (Lula's first finance minister and Dilma's chief campaign
coordinator this year), appears to have faced down much of the pressure from the
main coalition partners for additional and more influential roles. However, that
doesn't mean that the coalition partners are happy with their prospective lot,
with rumblings about a lack of proper consultation in a top-down process. The
tricky battle between the ruling Partido dos Trabalhadores (PT) and its main
coalition ally, the Partido do Movimento Democrático Brasileiro (PMDB), for the
presidencies of the senate and lower house has yet to be fought and the outcome
of that contest will dictate governability in 2011 and beyond, regardless of
Rousseff's nominal parliamentary majority.
Although the full cabinet, comprising 24 state ministries and fourteen other
cabinet-level offices, won't be formally announced until 15 December, in
mid-November Rousseff confirmed Guido Mantega in the finance ministry, with a
respected technocrat, Alexandre Tombini, replacing Henrique Meirelles as central
bank president and Miriam Belchior, a close confidant of Rousseff's who
currently oversees the Programme to Accelerate Growth (PAC), becoming planning
minister. Palocci, who is already overseeing negotiations with the coalition
parties, will also mould the executives' relationship with congress and its
links with the PT ranks. This effectively makes him the most powerful man in
government after Rousseff. The ministry of the presidency is widely seen as a
springboard to the presidency itself (Rousseff was Lula's chief of staff).
Palocci will be joined by Gilberto Carvalho, another of Lula's closest
lieutenants, as secretary general of the presidency. Those appointments confirm
that the moderate left-wing current shaped by Lula and known as Lulismo
will carry on under Rousseff. The markets reacted positively (see next
article) but it's worth taking note of the pre-emptive move by the PMDB, which held
onto its position as the largest party in the senate (with 19 seats), to form a
'superblock' in the lower house with four other coalition parties - the Partido
da República, the Partido Progressista, the Partido Trabalhista Brasileiro and
the Partido Socialista Cristão - creating an alliance of 202 federal
deputies (of a total 513), surpassing the PT's 88 elected deputies.
On 30 November, local political commentators agreed on a
further two cabinet posts. The outgoing planning minister, Paulo Bernardo (PT),
will apparently move to the communications ministry, currently run by the PMDB. At
Rousseff's request, Bernardo will oversee the beefing up of the ministry, which
oversees the national broadband plan and has responsibility for radio and TV
concessions. Bernardo will also implement the new digital communications law and
possibly a reform of the postal service. The Empresa de Correios e Telégrafos
(ECT) is currently run by the PMDB, but the PT is manouevering for control of
it. Rousseff has dismissed all talk of government controls over the media - “the
only control I am interested in is the [TV] remote control", she quips, and
Bernardo, a PT moderate, is a safe pair of hands in this respect. The PT's
Fernando Haddad is tipped to stay at the education ministry.
The PMDB will continue to run the health ministry, with Sérgio Luiz Côrtes da
Silveira apparently in the running, at the suggestion of Rio's powerful PMDB
state governor, Sérgio Cabral. Health is another area set for more
attention under Rousseff, with a budget of R$74.2bn (US$43.3bn) in 2011. The
PMDB is also set to retain the powerful energy ministry - with Edison Lobão
staying on at the helm. Lula's defence minister, Nelson Jobim, nominally of the
PMDB but closely associated with Lulismo, is also likely to stay
on. The PMDB is also keen to get its hand on the cities ministry,
currently run by the Partido Progesista, with the PMDB's Moreira Franco, who
impressed Rousseff as part of her campaign team, tipped for the post.
While the PMDB is also gunning for the state banks, Rousseff apparently wants
the economic policy secretary at the finance ministry Nelson Barbosa (PT) to
assume the helm of the Banco de Brasil, with Luciano Coutinho asked to remain at
the National Development Bank (Bndes) and Maria Fernanda Ramos Coelho at the
Caixa Econômica Federal (CEF).
- Swirling rumours
Among the wilder rumours doing the
rounds is that the PMDB could lose the agriculture ministry to the former
Matto Grosso governor and senator-elect Blairo Maggi, the controversial 'King
of Soya.' It's an unlikely choice - and would not sit at all well with
Isabella Teixeria, the independent environment minster, who may stay on in her
post. Lula's former 'star' environment
minister turned-2010-presidential-candidate, Marina Silva, famously resigned
her post in disagreement with Rousseff's Amazon development
plans.